Design

Redesigned Stores and Third-Party Delivery Pays Off for Krystal Restaurants

Jan 23, 2019

The Editors

The Krystal Company credits a store revitalization plan and third-party delivery for an uptick in sales, per a company release.

Krystal opened its first Iconic Series prototype restaurant, named after Krystal's famous burger, in Jackson, Ms., in August. It also marked the debut of a new logo, an abstract burger emblem, displayed prominently both outside and inside the store. The new design has already rolled out at locations in Tifton, Ga. ; Tuscaloosa, Ala. and Memphis and Chattanooga, Tenn. Krystal plans to open the first Atlanta locations featuring the prototype stores in early February.

The buildings are square like Krystal's burgers. The overall footprint is smaller, though the interior features expanded work zones. On the exterior, a full glass front and a double drive-thru complement the new logo. y. Inside, the prototype’s front of the house has wood-framed open ceilings and community tables.

Razed and redesigned stores are generating sustained sales volume lifts of 70 percent to 80 percent with average staffing increases of 66 percent, according to the chain. The redesigns are part of a company-wide initiative to improve the dining experience and adapt to changes in consumer behavior. Krystal plans to redesign 75 to 100 restaurants over the next 5 years, representing approximately 40 percent of Krystal's corporate portfolio.

Third-party delivery is emerging as a key sales driver, particularly for dinner and late-night dayparts. Krystal continues to grow its delivery business, from 2 percent of its restaurants in early 2018 to more than 60 percent of its restaurants by the end of January via Uber, DoorDash, GrubHub and Waitr.

"Delivery is a huge trend that's increased late-night sales by eight percent over last year," says Krystal CEO Paul Macaluso. In 2018 delivery sales soared for late night with 50 percent of third-party sales occurring after 10 p.m., per the release.